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tv   Power Lunch  CNBC  January 16, 2013 1:00pm-2:00pm EST

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th is, nyquil doesn't unstuff your nose. what? [ male announcer ] it doesn't have a decongestant. no way. [ male announcer ] sorry. alka-seltzer plus fights your worst cold symptoms plus has a fast acting decongestant to relieve your stuffy nose. [ sighs ] thanks! [ male announcer ] you're welcome. that's the cold truth! [ male announcer ] alka-seltzer plus. ♪ oh what a relief it is! ♪ [ male announcer ] to learn more about the cold truth and save $1 visit alka-seltzer on facebook. time to run with final trades. pete? start us off. >> i still like the emerging markets. starbucks, i think it's going hire. >> yahoo! looks interesting. i still don't see it ending. >> qualcomm is way less controversy than apple. i prefer it here. i. >> ebay going into the numbers. i think it can get long and i look for it to move above 55 on this news. >> that's it for us.
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more "fast" coming up tonight. how is the day going to end? we go to "power lunch" for some clues right now. >> "halftime" is over. the second half of the trading day starts now. >> and indeed it does. president obama unveiling his plan it stop gun violence. with sweeping changes to gun laws. what they would mean for the gun industry and for owners. and more trouble for boeing 787 dream liner. is it becoming a nightmare? new problems and the stock getting slammed today. japan airlines grounding all of its 787s after an emergency landing. smoke detected on that plane. will more carriers do the same? and lululemons stock down. the street not happy with its outlook but yoga retailer ceo said her guidance has been misunderstood and she will join us exclusively to explain.
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my partner, sue herera, is at the new york stock exchange. hi, sue pz president obama unveil be his plan for tougher kbun gun control, including banning military style assault rifles and tougher back ground checks. >> some have to have congresss approval. some include a ban on assault weapons, limits on magazine capacity, background checks and improve access to mental health. the president said that this is one of the most important things that he can do as president of the united states. >> this is our first task as a society. keeping our children safe. this is how we will be judged. and their voices should compel us to change.
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already the nra is out with a very tough ad criticizing the president as an elitist hypocrite. take a look at an ad. >> are the president's kids more important than yours? then why is he skeptical about putting armed security in our schools when his kids are protected by armed guards at their school? >> now white house press secretary jay carney came out with a response to that saying, to make the safety of the president's children the subject of an attack ad is repungent and cowardly. i it have a feeling this has just begun. >> check out the impact the new proposals might have on gun sales. they are all on the plus side with smith andes withon up 3.5 percent and sturm rugger up.
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and cabela's, selling a lot of guns in the midwest, up almost 6%. hampton pearson is live with us. hi, hampton. >> hi, sue. we are at one of the oldest gun stores in virginia. business has been booming. people want what they fear they might not be able to have in the future. they are basically sold out of assault style weapons. right now their demand is there, if they could get more supply. and frankly the phones here have been ringing off the hook. >> everyone is out there getting them and stocking up. unfortunately, it is affecting people like you and me who want to go by one. >> in months since the sandy hook tragedy this store sold out of its assault style weapons. reflecting the national trend of people buying what they fear might be banned. the background checks is on the
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rise. as well as a lot of first time customers, interesting in guns for home protection. but with some manufacturers cutting back, they don't know how much longer the business bonanza will last. >> i'm selling myself out of a job right now. business is obviously good. good for me. you know, that i have a job right now. but i'm selling so much that people come in and they have nothing to buy right now. >> president obama was on a big screen tv here making his historic announcement as far as gun control but literally no one here, especially customers, even looked up. tyler? >> hampton pearson, thank you very much. boeing hitting an air pocket today. another incident with the 787 dream liner. goldman sachs moved the company from its conviction buy list and moved its target on boeing from 90 to $98 a share. phil lebeau has more on the problems plaguing that aircraft and boeing. phil? >> tyler, you were showing
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boeing intraday, go back to last monday. that was the first report after dream liner problem in boston. it's been a roller coaster. but since last monday, down 3.4%, here is more in terms of the investigations. not "investigation", but "investigations." they are sending investigators to japan because of the plane that had an emergency landing yesterday. meanwhile, all nippon and dream liners are grounded. and lij yom ion batteries are the scrutinized batteries as they look at what went wrong with these planes. we mentioned the a and a flight. there was a landing in japan, the pilots saw a battery light come on. a and a says the main battery was discolored and election trol sis solution leaked. the lithium ion batteries are
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made by a japanese company. the company down roughly 9%. by the way, the battery in yesterday's incident, same as the battery at boston logan airport fire. finally, lot airlines out of poland, taking off inaugural flight today, from warsaw to chicago. took off about an hour and a half ago. it is due here in chicago, later on tonight. tyler and sue, there are a lot of people asking the executives at lot, are you still going to fly the dream liner. and their response, we've had no problems with the dream liner. it is doing exactly what it is supposed to do. we will take off on time. >> phil lebeau, thank you. should that 787 not grounded? joining me is a senior analyst with oppenheimer and company. mr. reiner, thank you for joining us. should this aircraft be grounded until safety concerns are done away with? >> i don't think so. consider the fact that plane has
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been flying now for over, well over a year. and yes, there's been incidents, these type of incidents are not unusual for a new plane. until now, there's not been a firm indication this thing is unsafe it fly. does it deserve more scrutiny? absolutely. and this battery, and the issues coming up, are not outside the scope of what you would typically see in a new aircraft. >> no one likes it see the image we are seeing now. emergency slides on that all nippon airways flight in tokyo are deployed as people got off it. when an aircraft gets a bad wrap, it can be 5 real problem. let's talk about boeing and its stock here. what is your view, is it a time to buy that noo that company shares? >> if you are horizon, a couple of weeks and months, it could be a bit of a rough ride here. i think that near term, you may have airlines saying to boeing, we are still on this aircraft,
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but maybe wait until you figure out the battery thing until you deliver them to us. and that context, you might have a couple of months or maybe even a quarter of you know, light revenues and maybe even pressure on cash flows. ultimately, the 787 has been tested by the carriers for a long time. it is a sound plane. it'll take off and boeing will generate a lot of cash from this device over the coming years. i think boeing, for a long term investor, it is terrific stock at $70. >> yair reiner, thank you. sue? >> a home run for goldman sachs. company saying its fourth quarter earnings nearly tripled. boosted by big gains, stock and bond values. deal making and believe it or not, lower compensation expenses as well. revenue up along each of the business lines. as a result, the stock is currently trading up a solid 3 plus percent at 140.15 per
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share. j.p. morgan also beating estimates and a lot of headlines from the bank regarding its massive trading loss as well as comments from ceo jamie dimon. kaylatausche has more for us. >> fingering several executives in the process, the board cutting jamie dimon's pay in half as a result. but dimon says the bank has been quote, better, stronger and tougher as a result. the record net income for the quarter and 15% return on tangible equity. another uptick in number two. up 8% this quarter an 33% since last year. dimon continuing his bullishness on housing saying quote the entire gamut changed. he expects them to remain strong throughout the year as rates remain low. also a surprise to the upside, debt surging 79% since fourth
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quarter last year and assets under custody in the investment bank tripled to or i should say rather, topped $18 trillion. even so, j.p. morgan suffered from the same sector, scat loan growth and shrinking interest margin even as deposits grow. how is the stock cheap enough to buy in dimon says he is sensitive to the price even with a $3 billion buy back program in place. dimon asked the feds for smaller buy back to go forward to play it safe in a regulatory environment. sue, back to you. >> thank you very much. matt, covering goldman sachs and j.p. morgan for wells fargo. matt, first of all, let's go to j.p. morgan. how do you rate the stock and do today's rates change the way you feel about the stock? >> thanks, sue. we have an outperform rating on j.p. morgan today and we've had it for some time. we think today's results actually were, once you read through a number of the one-time
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items, relatively strong. we see a core return on tangible common equity in mid teens. and we think that the strong mortgage performance of the company as well as the relatively strong performance out of investment bank, good revenue performance, and as your previous reporter mentioned, preconference as well and that leads it a solid performance. relative to the peer group for the next six to 12 months. >> so matt, give mae choice between goldman sachs and j.p. morgan. i know they have fundamental differences between them, but if you have to buy one stock today, would it be j.p. morgan or goldman sachs? >> as i said we have an outperform recommendation on j.p. morgan. i think goldman sachs quarter, while it was very, very good, my sense is that there is some concern about sustainability of
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those revenues for goldman sachs and its ability to maintain double-digit returns on equity. so at this point, we like j.p. morgan more than goldman sachs. >> fair enough. matt, thanks a million. good to see you. ty, over to you. >> reaction to the president's gun proposals. and debt talks. we will tackle those when we come back. plus plus, an exclusive with the ceo of lululemon. find out what the retailer is doing to take advantage of changes. with the spark cash card from capital one,
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a showdown over the debt ceiling with republicans using the threat of default to try and leverage spending cuts from the white house. representative peter welch is democrat from vermont and he has been calling for the president to envoc the 14th amendment to circumvent congress and protect the economy. congressman, welcome. good to have you with us. before we turn to the debt ceiling, i would like your reactions to the president's proposals to curb gun violence and whether you think those legislative proposals that he made have a chance of getting through either house of congress or both. >> i do. i mean, all of us are just astonished and appalled at what happened in newtown and the idea that a 6-year-old child would have 11 high capacity bullet designed by the military for combat pumped into that little child is really changing the discussion here.
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so i think the focus on practical things like high capacity magazines, like background checks that work, like trying to come up with appropriate assault weapon ban, these all make sense. and then his executive authority to make certain that laws we have on the books against gun trafficking are actively and aggressively enforced, i think those are practical suggestions. a lot of debate but a new day here. >> congressman, let's move on to another hot topic debate and that is the debt ceiling raise. you have been one of several democratic congress members to say that the president should envoc a provision of the 14th amendment that says that the sanctity of the public debt shall not bestio as a means to get around a congressional vote on raising the debt ceiling. the white house has said, indicated through the spokesman, that they have no interest in doing that. they don't think they are entitled to do that. why do you think they are so cool on this idea and can they
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envision their point of view changing. >> if congress is ultimately so irresponsible that it plunges this country into default, it will be a new day for the president and he will have to decide whether to use that authority to rescue the economy from catastrophe. i can see why the president would be restrained on it. he wants to negotiate number one. he wants congress to be responsible, number two. you know, in the past, the debt ceiling was an opportunity for grand standing by both parties. in fact, senator obama voted against the debt ceiling increase. but it's been weaponized now. it has gone beyond grand standing into lectures on fiscal responsibility to justify -- go ahead. >> i see that and i absolutely -- i understand that. but one of your colleagues yesterday, tom grays of georgia, says the president is wrong to think that the debt ceiling increase is a rubber stamp. those days are over. this is one of the last stop
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signs left and congress should use it. can't you see why some members of congress and many people in the general population feel that way. i mean, why -- you know, they feel, we have tried everything else but we can't get congress, washington, to listen to the imperatives on spending cuts and so, can't you see how they feel that way? that congressman does? >> i can see how they feel that way. and i can see the political appeal of using the debt ceiling, because it looks like something that will really work. but the reality is the collateral damage that would be done by a successful plunge in this country and default would be far excessive in any gains you would hope to achieve. if interest rates go up by 1%, the cost of the american taxpayer over ten years will be $1 trillion. so the notion that we can make it negotiable, whether we pay bills, i think is a fairly dangerous proposition. one of the things i've advocated for is that we return to what is called the gephardt rule so when
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con gresd passed the budget, that the moment we are deciding what the debt will have to be. that the debt ceiling is adjusted to accommodate the budget that we pass. and there is an enormous amount of hypocrisy going on. and i admit on the democratic side on the past, you know, it is like you going out and buying a refrigerator on your credit card and then 20 days later the bill shows up and you see you are over your debt limit, so you tell the freezer company, you're not paying it. the decision when you spend the money or raise taxes -- >> thank you very much for your answer. hope you will come back and join us again sometime. >> thank you. >> second inauguration of president obama takes place on monday, january 21st. that will martin luther king, jr. he will be sworn in on the day before, the 20th, as per the constitution. i will host a special cnbc event. it begins at 11:00 a.m. eastern
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time. that is, monday, martin luther king, jr. day. >> sue? >> ty, shares of lululemon continue to be under pressure on the back of the latest outlook. what is ahead for the yoga appear el maker? courtney is live in miami. courtney? ♪ ♪ ♪ [ male announcer ] don't just reject convention.
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welcome back to "power lunch." we want to bring you the latest on the american natural gas workers being held hostage in nigeria. the spokeswoman victoria nuland addressed us moments ago. >> the best information we have is that u.s. citizens are among the hostages. i hope you will understand that in order to protect their safety, i'm not going to get into numbers. i'm not going to get into names. i'm not going to get any any further details. >> an attack occurred overnight at a joint venture between bp of the uk, stat oil of norway and
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of the algerian oil company in the eastern part of aljeera, which is in north africa. we are showing you the google map site or photo of the site which is called anemis. p is one of four major facilities they have there for natural gas production. this is also courtesy of the bp website. bp put out a statement and saying that their absolute priority is the safety and security of the staff. they are manned by staff contractors from the joint venture. we do not there are hostages and a number of foreign ministers around the world said they have also had citizens taken. why does this attack occur? according to the press report, a country to the west of algeria, the militant say this is
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retribution for or retaliation for french airstrikes on mali insurgence. that the whole story as we know it. american hostages held in algeria working at a natural gas facility jointly by stat and bp. >> michelle, thank you very much. lululemon is under pressure. the street not happy with its latest outlook but the ceo is firing back saying lulu's guidance is misinterpreted. live with lulu's ceo, over to you courtney. >> reporter: thank you very much, sue. we have the ceo of lulu. we will give her a chance to answer to misinterpret tracings. the street possibly misinterpreting your guidance. i want to give you a chance to clear that up. >> we did not issue guidance for next year. we are still in this year. we just gave the end of theier
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round-up with where we are. keeping in mind we still have about two and a half weeks left in this fiscal year. we didn't issue guidance and we won't until probably the march earnings call period. and i think the second where we were talking about, you know, really what is happening in the macro consumer environment and it becoming more promotional for consumers, about raising our game and actually not engaging in those practices, i think that was misinterpreted in the talk today and people thought we would play that game which is absolutely not true. >> what do you mean when you say you are upping your game? what does that mean? how do you compete if you don't do promotions? >> i think the first thing is you can't blame them. what is happening in the consumer is they see these, they call is black week between cyber monday. shop early. consumers are savvy. they're buying gift cards. they are waiting until after holidays where their cash goes further. i think you only have to walk a
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mall and see a lot of mothers and daughters and friends shopping together to maximize the gift dollars. you either play in the game of discount or not. i think we have to recognize that maybe the shape of sales in the future will change. maybe or maybe not as much under hard goods given for under the tree present and more afterwards. i think you have to be able to shape your buying patterns to respond to that as one strategy. the second is, you know, if you are not going to discount, you have to do unusual and gold things during that holiday season and we've got great things planned for next year, which is a shorter holiday cycle. actually six less shopping days for consumers next year. you have to be ready to handle vol that as well. >> so during holidays, there were missteps. what exactly went wrong and what are you going to do to fix it going forward? >> we definitely have some, you know, what i would refer to as pos issues, where we couldn't
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handle volume. weren't able to roll out hand-helds as quickly as we would like to. we had issues in early november around our product notification which is a big part of the grass root marketing strategies going out. few more i.t. issues early in the year for us. that we were able to overcome and get through the holiday season with. definitely had some impact for us on sales. >> okay. i believe sue has a question. >> yes, christine, appreciate having you here. >> hi, sue. >> two questions for you. there is worry down here on street that you expected perhaps a little bit too fast both in the united states and overseas. if you could address that issue for us. and then, i notice that the e-commerce part of your business is not necessarily included in results. how strong is your e-commerce business and how much of a part of your business going forward do you think that will be? >> i will start with the last
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one. this year e-commerce was roughly 15%. we are not done with the quarter. it is still a moving number. so 15% compared to 13% last year. so much deeper penetration. gift card sales were also up for us. pretty substantially as one of the biggest peaks you've seen in gift card sales. in addition to, the comps which are the physical scores and more mature scores. we also have a lot of noncomp stores which are stores that are not fully mature. for us we feel it was a really healthy growth season for us in a holiday where a lot of people were discounting and we stayed full price. >> i'm sorry, the first part of your question was? >> first part is international expanse. i think you opened some 201 stores and there is worry that perhaps you expanded a little too quickly. i'm assuming you disagree with that certainly but can you address those concerns? >> i definitely disagree. we've been very cautious in our growth. we've not been somebody who just
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opened a ton of stores as a retailer. we have 30 to 35 stores a year, which is very executable. it we have been saying we are a year or two behind for the size of business we are. we are very rapidly implementing our infrastructure but there are a lot of products working simultaneously. occasionally you get things bumping and moving around. john and i give that in the guidance we give the street and give ourselves room for that. i will point out we successfully met everything we said we would do and even exceeded it. >> indeed. >> quickly, for a last question here, interest is about 14.6% afloat. i know you got questions here early. how do you deal with shareholder activism. is it something you ride or do you come out and fight? >> i think there is two different things there.
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number one, we're pretty closely held by a long-term held by a group of long-term shareholders. that are besides chip. so there is a lot of stability in our shareholder base and we really work for them. the more trading aspect of the stock that short term, that's not really something we can control or that we really pay honestly that much attention to because it is a reactive situation. our job is to deliver a great business model. we have the number one business retail model and two, continue to deliver quality growth. and shareholder value and i think we do that pretty well. >> thank you so much. christine day joining us from lululemon. back to you, sue. >> thank you, ladies, very much. sharon epperson is tracking action for us at the nymax. how does it look, sharon. >> gold down just about a dollar. the world banks forecast for slower global growth in 2013,
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that is something that limited the gains for gold. we're also looking at what is happening in platinum and palladium. goldman sachs saying they believe palladium will outperform platinum, even though the reverse has been true so far. well watch what is happening there as well as south africa with many miners on strike there. anglo american platinum as we told you, cutting production and workers on strike. definitely an impact on the platinum group metals this week. back to you. >> sharon, thank you. when we come back, where are the rich putting their money these days? if you said stocks, you would be right. robert frank will tell you which sectors have piqued their interest. is wall street back? was it ever gone? we'll be right back.
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all right, dow jones off 24 points. s&p is fractionally higher. you can almost call that unchanged. nasdaq up about eight point. kenny is back. director of floor operations for o'neill securities. good to have you back. we missed you. >> pleasure to be back. >> we saw mixed results on the financials today and yet this mark set proving to hold up
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pretty darn well. >> the mark set holding up. when you look at goldman numbers and jp, goldman blew it out of the water. but look at what is the news is doing. the overall mark set not getting excited about it. i think that gez right to the point that mark set still very concerned about some of the broader issues and the rest of earning season which will be next week and the week after. right? >> is that key? washington is going to do what washington is going to do or not do. >> i think that is key. i think the market, until the market gets more clarity out of washington. if we hit the debt ceiling and there is a fight in the street, the market want to know that. it still once again is giving thep the option that it doesn't want them to do that. but if it does, listen, the mark set threatened by s&p and moodies is ready if that happens. >> and fitch. >> and fitch. the fact we are stuck here at 1475 now, 1470, 75, which is the highs, is indicative of a market that is no reason for it to go
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higher until the issues are solved. >> i know you were traveling so i will give you a pass on no recipe today. we will just do chinese takeout. >> i took the red eye and lanted at quarter to 9 this morning. >> choe niinese takeout for ken today. >> not italian takeout. thinking gold, german take out. they are taking out of both paris and potentially u.s. look at two-day charted tens. we are a couple base point lower but similar pattern yesterday. low yield around 9:00 eastern. same as yesterday. look at comparison between our ten-year and boons. selling pressure early in the year. widen that spread out. 40 is the key. moderated a bit. good to pay attention to. and last chart, this is a one-month chart. one-month bills. even though it basically moved from close to zero to 7.5 basis
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point,i it's a lot. tyler, back to you. >> thank you. now where do the wealthy plan it put their wealth this year? robert frank knows the secret. what are they? >> good news for mark set that stocks are gaining in popularity with the wealthy. 55% of millionaires plan it put new money into stocks. that up from 45% in 2010, according to a new study from the spectrum group. as to which sectors, tech was first, followed by health gar care, then pharma. that partly because the average age of millionaires is 63. wealthiest is construction and autos. which is interesting given that housing and autos led the recovery so far. millionaires still like gold and other collectibles. favorite though, is coins, not art. about half of today's millionaires will invest overseas. but here are either surprises, when i asked where they put their money, gr bra zil is
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first, china, canada and europe, not india or russia. russia ranked last on this list. maybe instead of bricks, we should call it the becks. not as catchy maybe more appealing. >> brazil is number one by a significant margin. 2 percentage points. >> then canada and europe. canada and europe not among the big markets that we talk about as growth markets, but that's where they're from. >> to bertha coombs now. >> the wealth management firm this morning posting earnings that missed the mark on the top and bottom line. but taking a line down with fitch coming out with a report saying that they expect that revenues will continue to be tough for them. they also said that their expenses continue to be too high. back to you. >> thank you very much, ber that. if you have an idea and you would like big money behind it, don't move.
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expertise matters. find it at northern trust. jamie dimon earning 11.5 million. should he have taken a bigger cut? some say yes. 43%. 16% say no. 41% say he is still making too much money. let's see what is coming up on "street signs." mandy is here. >> so many things, i didn't even know where to start. but let me take a crack at it. is there a crisis at boeing? shares aren't that far off the 52-week high. we will talk about how good is their damage control. also what is up with the new eye tunes? brian says no one understands it. do you? also, as we hand out extreme,
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easing to the worst calorie offenders as some of our major restaurant change in the united states. also, talk to the ceo of domino's. he will be on our show. a lot coming up at the top of hour. back to you. hello everyone. i'm tyler mathisen and this is the power pitch. we give entrepreneurs 60 seconds to make their pitch and then they give us an insight into the fast-paced world of startups. elias roman, owner of songa. apple, pandora, here is his power pitch. >> hi, my name is elias. i'm one of the co-founders songza. we make things you do everyday better. we make it fast and fun for you to tell us exactly what you are
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doing right now and we provide a very carefully cure rated play list that's the perfect music for your moments. others focus on access. help you search for artist and sort for songs and create play lists for yourself. we focus on something very different. we focus on what you are doing out there in the real world and how to make that different in music. we make money differently. display ads. sponsored branded play lists that help brands connect with their audiences through the power of music. and a co-branded platform that brands can build on to offer a co-branded version for songza. the first thing they do in the morning and often the last thing they do at night, we are growing and fast because we do a simple thing right. we make your life a lot better. >> and there's the pitch. elias on the right side of your screen. he cannot react to our critiques just yet. our panel today, julia boorstin, cnbc entertainment and media
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reporter. and matt burjis, president of the core yum group. what's your immediate reaction? >> people in my office love songza. so i know elias is doing something right. but i'm curious about the business model. i'm not sure how they will make money. >> julia, what is your quick reaction? >> my concern is competition and fact we expect itunes to jump into this space as well. also the issue of, its very high cost and how they manage it. >> okay, well ask a couple of questiones about your business and then thumbs up or down whether we're under or out. matt, ask the first question. >> elias, you are competing against the highest valued company in the universe, apple, head to head. and have you competition in pandora who scaled up to 150 million users and still 60 to 80 cents for every dollar they make on royalties. how are you making this work? how are you going to make money
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and compete against these giants? >> i think one of the challenges pandora has is their product is music spop that makes it challenging to mon advertise. you can serve display ads around it and audio ads between it. with songza our prod subject lifestyle enhancement. people tell us what they are up to right now and we serve very curated solutions to make that better. there are other ways to deliver that service outside of music. say the apps out there. books out there. different physical product to bring in front of you. >> at the end of the day, you are still paying music licensing costs and still facing really tough big competition from the likes of apple. what are you going to do in terms of being able to figure out how to scale revenue without cost growing faster than revenue is growing. >>. >> as pandora has shown, you can offset royalty costs. they haven't gotten to the point where they've gotten beyond that point so that's where the commerce that i alluded to, where that kicks in.
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but if you want more out of ad sales you have to deliver more to users and advertisers. >> have you done any of these sponsored play lists yet elias? i'm cooking and so, this cook segment is brought to you by mccorps mick spices. >> absolutely. mccormick, mercedes benz, connecting their brand with music. tie it into the lifestyle they wanted. victoria secret is another example. zappos. radio shack. interesting content that doesn't stand in between the user and what they want to do. it enhances it. >> let's move on. time for our vote. are you in or out on songza in matt? >> i think songza will never be profitable. never go public. but elias's point about lifestyle is a big one. we wear our music like a suit of clothes. not just a tie, the whole ensemble. i think they nailed that. i think they will get acquired and i'm in. >> julia? >> i like the service. i like that they have multiple
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revenue streams and i like that amazon is an investor. i think that has big potential. i think it is a crowded space but overall, i'm in. >> and i am in. these three for three, elias. you are going to hollywood, or somewhere i guess. i like the idea that entertainment is all about niche. i think you've got a niche. thanks so elias for joining us. and thank you to our panel, that is the power pitch. good news on songza, ever since i met elias, and last night i fell asleep to what is called falling asleep. and the music will put to you sleep. head to and vote now. do you like songza, its concept or not? sue? >> ty, thank you. president obama and nra both using children to make their arguments for gun policy in the u.s. should children be included in the political process? that's part of the power rundown when power lunch comes back. what are you doing?
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time for the power rundown. talking guns, money and butter.
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butter fat to be precise. president obama inviting children to his gun policy announce many earlier today. just as the nra airs ads call is the president an elitist hypocrite for sending his children to school with armed guards. jane, is the use of children in the middle of these kinds of very, very polarized political debates, is it fair? is it right? >> i don't know. it is predictable, tyler. kids are upset about what happened at sandy hook and that's natural. i think guns, pardon the pun, make it an easy target. it is hard to to tell people that there are people in the world who are not right in the mind. >> john carnie, your thoughts? >> nothing new that children have been used for political pawns. i'm not sure this is the most rational way to conduct a political debate but it happens over and over again. >> i think the use of
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individuals, whether they are children, maybe especially children, being used as part of the scenery in a political event and whether the o 0rdnary people gathering around the president with a fiscal cliff thing, i think it is overused. i found the nra ad vile. >> i think when the president calls out by name, this i go, that guy. and -- >> it is an overused tactic. >> when he points out a soldier, i don't feel icky about it. >> i would say, if barack obama wants it talk about me in the state of the union speech, i will make an exception to my rule. >> that will be icky. >> based on goldman and morgan's good earnings, is wall street -- is wall street, look at that, did wall street ever go away, jane? >> not out where i live. people are like, what do you mean wall street went away? when was there suffering back there? oh, jamie dimon's pay is cut to
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only $11.5 million. oh, sorry. did anyone in the mortgage crisis go to jail? i never saw it go away. >> john carny. >> one thing they didn't do is pay their people as much as they used to p.m. banks used to pay out to 50% of profits or revenues right back into themselves, their own employees. out in ratios of compensation are way down. even goldman sachs is way below 40%. >> wow. >> all right. >> i know. >> let's move to a topic that we talked about guns. money and now butter. new research suggesting that aspiring ceos need to layoff the fries, fatty foods. but does anyone really care if a ceo is fat or skinny so long as they deliver the bacon, john carny? >> i think they do. right now in our culture, health is a substitute for morality. when they look unhealthy, they
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look unethical. so they are trying to project ethics through their appearance of health? >> jane wells? >> is a second class felony in california to be overweight. which is why our prisons are overcrowded. i think if you are a fat ceo now, you have gotten through all the biasis that people have and you must really have something going on. >> maybe we should stop the really good looking guys be ceos. someone once said, if you see an ugly person on capitol hill, that is probably the most powerful person in the room. >> good looking ceo? i'm sorry, twl are good looking ceos? >> i'm going through my mental rolodex. i cannot think of a truly overweight ceo. >> brian dunn was. gary loveman. >> i long for the days when the fat cats were fat cats. >> all right, ty, the fed gets said for the next dig announcement for the economy
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